TradeStalker's
Support and Resistance Update
7 / 7 / 2011
(Published Since 1996)
...............................................
Dateline: 8:16 pm eastern time, 7/7/2011
The ES gapped up 11.25 points on the open on Thursday and
the market stayed in a trading range until after noon. A
move to 1350.50 occurred by 1PM, but the market barely
pulled back and the ES ran up to 1352.75 by 2:30PM. A small
dip was bought, a test of the high 1352.50 was reversed.
That set up a 123 top in the last hour and gave a drop to
1348.75. That was the biggest pullback all day, and at trend
up support for the ES. But while stocks didn't budge, the
futures rallied into their close to settle well above fair
value.
With good ADP jobs numbers on Thursday, the market took off
to the upside before the open and held those gains into the late
afternoon. The market has rallied steadily higher as we come
into Friday's Employment report. A small position in put
options was put on Thursday with the ES around 1348.50 and
1352.00, and average entry around 1350 basis the ES. Another
big up day that holds gains doesn't seem to have good odds
on Friday.
In any case, it looks like the key on Friday will be holding
at, or above, the initial support areas at 1349.00-1348.50
area on the ES and 2409.00-2406.75 area on the NQ. If those
areas hold, then the up trend can continue for a bit
further. However, if those areas are broken and the market
does not quickly reverse back up, then the trends will begin
to roll over. If that is the case, then the next support
areas should be in the cards at the least.
On the upside, if there is a move over the Thursday high
areas (initial resistance) instead, then we could see either
a token higher high that reverses from the second resistance
area. If there is no sign of a turn there, then a run up to
the 1358.00-1358.50 area could occur before the market has a
decent pullback. If this is the case, then the pullback from
around 1358 would need to hold at or above initial support
areas still, or the market will begin to change character.
September 2011 SP futures resistance
symbols: emini = esu1 / big contract =spu1
1352.00-1252.75
1354.50-1355.00
1358.00-1358.50
1362.00-1362.50
September 2011 SP futures support
symbols: emini = esu1 / big contract =spu1
1349.00-1348.50
1344.25-1343.50
1339.25-1338.50
1336.00-1335.25
September 2011 Nasdaq futures resistance
symbols: emini = nqu1 / big contract = ndu1
2416.25-2418.00
2423.50-2424.00
2430.00-2431.50
2438.00-2439.00
September 2011 Nasdaq futures support
symbols: emini = nqu1 / big contract = ndu1
2409.00-2406.75
2401.75-2400.75
2392.00-2391.00
2386.00-2384.50
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Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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